Did you know that US solar capacity just passed an amazing 100 gigawatts?
No one can argue that solar power energy is the wave of the future. But what about your individual part to play? What solar power benefits do you stand to gain by making the switch on your home or office?
To encourage more people to go solar, the government offers a wide array of solar credits. Keep reading to learn more about these solar power incentives and what they can mean for you personally.
What Are Solar Credits?
No doubt you’re already familiar with the main reasons everyone’s going solar. As this post from blueravensolar.com/south-carolina/ points out, it’s a tremendous help to the environment and it will reduce (or even eliminate) your electric bill.
However, it usually takes a substantial upfront investment to install solar panels on your home or business. To offset these costs, the government offers generous “solar credits” to everyone willing to go solar.
What Is the Solar Investment Tax Credit?
The solar credit you’ve probably heard of is the Solar Investment Tax Credit, or ITC. It was signed into law in 2005 and offered an incredible 30% tax credit on solar panel installation costs.
Since then, the incentive has dropped 4%. It was scheduled to be reduced again in 2021, but the federal government decided to extend the current incentive for another year. This means that homeowners and business owners can enjoy a 26% credit on installation costs through the end of 2022.
As of now, the credit is due to be reduced in 2022 and then ended in 2023. It’s too soon to know whether this will change again, but one thing is clear: 2021 and 2022 are the years to go solar!
What About State & Local Solar Power Incentives?
The federal incentive is motivation enough, but there are more solar credits to enjoy and take advantage of. Each state has its own incentives for going solar, and you may even find offers within your city, county, or region as well.
What do these solar credits cover? The three main areas include:
- Photovoltaic panels
- Concentrating solar energy
- Solar heating and cooling systems
To find out which incentives are available in your local area, you can consult a government database for specifics.
A final thought to keep in mind is that solar panels more than pay for themselves over time. Between these solar power incentives and the savings on your energy bill, you’ll wonder why you didn’t make the switch sooner.
Take Advantage of the Solar Power Tax Credit in 2021
Solar power benefits include more than helping the environment and saving money on your electricity bill. There’s also a wide range of solar credits available to help you save even more.
If you’ve been on the fence about making the switch to solar, now is the time to take action. Find out what types of solar power incentives are available in your area and go solar!
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